Partitioned IRR when evaluating a syndication

[Duke Giordano]

Hey All,

When investing as a limited partner, whats your thoughts on looking at a Partitioned IRR to better evaluate return that is based on cas flow vs sale? What is a typical breakdown in most syndication deals for cash flow vs sale proceeds and contribution to IRR? From what I have seen most are in the range of 70-85% Sale Proceeds and 15-30% cash flow.

Seems like safer syndication deals are more cash flow heavy, but also have less upside.

[Duke Giordano]

Thanks all @Brian Burke, @Mike Dymski, @Roni E., @Chris Coleman.

I agree, seems partitioning IRR is becoming more important to take into consideration as the market matures for conservative investors. I like to see a few conservative numbers, or one strong conservative variable such as a cash flow heavy partitioned IRR compared to market partition IRR or possibly a very low LTV (60% or so) to weather any impending storms...